UPDATED: CSU board approves presidential salary cap

LONG BEACH - The California State University Board of Trustees on Wednesday unanimously approved capping salaries for new presidents following a public outcry last year over a campus president's pay package.

The new policy will cap salaries for newly hired university presidents at $325,000 or no more than 10 percent above what their predecessors made. The base salaries are paid by state taxes.

The board's subcommittee on presidential pay approved the policy, followed by the full board's unanimous approval in its regular meeting at the CSU Office of the Chancellor in Long Beach.

The meeting was far calmer than the last time the board met in November for a tuition hike vote, when protesters clashed with campus police. However, there was a visible police presence at the building's entrance Wednesday.

CSU Board Chairman Herbert Carter said the policy will provide potential campus presidents, policymakers and the public with reasonable expectations for presidential salary levels.

"Our continued goal is to recruit and compete for the best leadership possible, but also within articulated budget guidelines," Carter said.

Trustees are searching for five new presidents in the 23-campus system. The new policy will be implemented as the board makes its presidential selections, officials said.

The issue of presidential compensation came to a head last year when trustees approved a $400,000 compensation package for San Diego State President Elliot Hirshman. In the same meeting, trustees also voted to raise student tuition by 12 percent.

Hirshman's pay package, which includes a $350,000 salary plus a $50,000 supplement from the San Diego State Foundation, is $100,000 more than what his predecessor made.

The move caused a public outcry and prompted state legislation meant to limit CSU presidential salaries. State Sen. Ted Lieu, D-Torrance, who introduced Senate Bill 959 to cap CSU salaries, commended the board's actions on Wednesday.

The changes are "significant reforms that will help rationalize CSU executive compensation decisions," said Lieu, who spoke during the public comment portion of the meeting.

Under the new policy, the CSU system will use a guideline that considers the salaries of presidents at similar universities, a candidate's reputation, and length and depth of experience.

Previously, CSU presidential compensation was determined using a list of comparable salaries at other universities compiled by the California Postsecondary Education Commission. CSU officials said the list, used for 20 years, was "outdated" and included presidents with salaries as high as $2 million.

According to the Chronicle of Higher Education, the median total compensation for presidents of public colleges was $375,442 in the 2009-10 school year. Total compensation includes the amount of base pay, bonuses and deferred compensation a president actually collected in the fiscal year.

Ohio State University President E. Gordon Gee topped the list, earning more than $1.3 million in total compensation.

The average base pay for CSU presidents ranges from $258,680 to $350,000, plus housing or an annual housing stipend ranging from $50,000 to $60,000. Three presidents also earn annual supplements from campus foundations.

CSU Chancellor Charles Reed earns $421,500 a year, in addition to housing and a $30,000 annual supplement from the CSU Foundation.